Being a Tradie can be stressful when you have to worry about the financial admin involved in running your business. To help, we’ve put together these top tax tips to make tax time a breeze at the end of the financial year.
- Structuring your business right – This may not seem like a tax tip, but it can mean the difference between having to lodge one tax return or multiple returns. It’s a common misconception that you have to register a Pty Limited company in order to trade. In fact, there is very little advantage of registering a company when you’re trading as an individual, and for some, it can result in increased compliance costs and headaches.
- Lodge and pay taxes on time – Keeping track of important tax dates is crucial. Making sure you’re lodging and paying your taxes on time helps to avoid any unnecessary stress and worry that’s associated with knowing things are piling up and overdue.
- Keep up-to-date financial records – It’s easy to get behind on your paperwork when you’re busy running your own business. That’s why having a good system in place and regularly keeping this updated will make life much easier when it comes to filing your GST and tax returns – and keep you compliant with the ATO.
- Raise deductions regularly – Make sure you know what you can claim (including home office expenses, mobile phone bills, vehicle expenses and building materials), and keep good records and receipts of all your expenses. Expenses reduce the amount of tax you’re going to pay at the end of the financial year.
- Make super contributions – Contributing to your super has its own tax benefits. You can claim a tax deduction for super contributions that you make or you may be able to receive top-up contributions from the government to your super. Super contributions can reduce your taxable income while helping you save for your future!
- Get advice from a tax agent – As an accountant, it’s their job to stay up-to-date with the latest tax legislation. They should also frequently update you with your current tax rate, and help you understand what you can and can’t claim as a deduction.
How Hnry helps
Hnry takes all the stress out of being a self-employed tradie. We automatically pay your taxes whenever you get paid, before passing the rest of your money onto you. You get peace of mind knowing what’s yours and that you’re always up to date on your taxes. With Hnry’s revolutionary app, your financial admin is all in one place; create invoices in seconds, raise expenses for instant tax relief, allocate a percentage of your pay to your super, and get unlimited support from our expert team of accountants. Our accountants will help you maximise your tax deductions to save you money, by giving you the right advice on what you can and can’t claim. We’ll even lodge your returns whenever they’re due, so you never have to think about tax again!